Hey Bou ...

Great to see you're hanging in there. Believe it or not, SPQ is going to shine for you, but not through a reverse split.

I know you're a great fan of reverse splits (RS). And I know that there are probably examples of companies that have done well with an RS. However, I want to illustrate one from almost our own backyard that hasn't done so well, Murgor Resources (MGR-V).

At MGR's 2007 AGM the shareholders approved a 1:6 reverse split. Murgor's share price on that date was .96 cents and there were 113,178,931 shares outstanding. I haven't calculated the value of the company at that point but clearly it's over $100 million.

On November 7, 2007 Murgor's share price hit $1.25 . However, for reasons not so apparent to me, on November 26 when the reverse split occurred, the share price was around 90 cents. The number of outstanding shares was 18,863,155 .

Between that time and now, I know there was at least one rights offering in January 2008 at .60 per unit with 1.7 million units sold.

I looked at the TSX today and MGR is trading at .29 cents with something like 29 million outstanding shares and a quoted value for the company of $8.5 million. I also noted that just 20,000 MGR shares were traded today. Among other issues, MGR seems to be illiquid.

Now, if I was still an investor of Murgor Resources, lets say with 5000 shares bought in October 2007 (before the reverse split) with an average cost of $1, I would be very concerned hoping like heck that NOT and FWR find tons and tons of gold over at Windfall. My "now" 850 or so shares are worth 29 cents each. Yikes. In my estimation, only good for a capital loss on 2008 income taxes - if that.

As I said previously, there are probably examples of companies that have succeeded with reverse splits. But the facts for Murgor Resources are scary for the ordinary investor - like you and me. This is an explorco mining company on the TSX venture that is very similar to SPQ playing in basically the same ball park.

IMHO a reverse split would have killed Spider Resources. However, I think - sadly - Murgor is "bye-bye gone-gone". Their shareholder's believed their management's story. A fairy tale, methinks.

Snug